The New York state assembly passed a hotly-debated bill that places a two-year ban on proof-of-work (PoW) crypto mining operations that are highly dependent on carbon-based power.
Environmentalists applauded the bill as a win for carbon-emission reduction, but crypto industry players believe it will make New York less attractive to digital-asset businesses.
Kristin Smith, an executive director of the Blockchain Association, says the new legislation will have a significant chilling effect on the crypto mining in the state. It threatens to send hundreds of good-paying jobs to neighboring states Smith says the bill will place New York in the unique position of being the only state to pass a law at a time when other states are either studying the industry or actively welcoming the economic development it creates.
John Olsen, the New York lead at Blockchain Association, said the bill intends to prevent new mining operations that would draw power from fossil fuel generation. He pointed out that the impact is just economic in the sense that good-paying jobs are going to other states. In terms of environmental impact, mining operations would face less regulatory scrutiny.
Todd Esse, one of the energy industry veterans, says the concept of a decentralized transactional network supported by a PoW platform can provide grid benefits. It can provide the ability to develop green resources behind the meter. Esse described the relationship between carbon-based energy sources and renewables as symbiotic. He highlighted that the grid still needs carbon-based generation and it’s unrealistic to think that carbon-based power plants can just be removed.